Weighted Average Shares - Diluted DPS

I see two processes in the kaplan book for this.

You can either multiply the # of shares by 12 and then divide the sum of those products by 12 to give you figure you need as the divisor in diluted EPS


You can multiply each # of shares by t/12 as you work through the calculation for the divisor.

I do not believe this mathematically creates any differences but I would like some confirmation. I notice that sometimes I get different answers. Is this simply due to calculator mismanagement on my behalf?

This is simply about calculating weighted averages.

Take the 2nd approach since it’s from my opinion the most transparent one and easier to correct in case of a flaw (e.g. you counted the wrong number of months).

Regards, Oscar

i would personally go with #2. Much easier to do. 1st one creates too much complication